DATE: April 23, 2025
TO: President and Directors of the Harbor District Board
FROM: Public Works Department
TITLE: AMENDMENT 5 TO PERCENTAGE LEASE AGREEMENT WITH CHARLES W. BRAMMER, DBA CHIC'S CUSTOM CANVAS
RECOMMENDATION
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Staff recommends that the Harbor District Board of Directors approve Amendment 5 to the Percentage Property Lease Agreement with Charles Brammer, dba Chic's Custom Canvas, for the leased premises at 1400 Harbor Drive North, Suites "A", "B" & "C", for a one-year minimum total revenue of $18,386; and authorize the Administrative Officer to execute the amendment.
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BACKGROUND AND ANALYSIS
On May 17, 2017, Chic's Custom Canvas ("Lessee"), entered into a Percentage Property Lease Agreement with the Oceanside Small Craft Harbor District ("District"), for the office spaces located at 1400 Harbor Drive North, Suites "A", "B" & "C". Lessee provides onsite boat canvas repairs for boaters and the public within the Oceanside Harbor. Amendment 1 to the Lease Agreement, dated February 7, 2018, Amendment 2 dated June 5, 2019, Amendment 3 dated May 5, 2021 and Amendment 4 dated May 3, 2023 were subsequently approved by the Harbor District Board of Directors (collectively "the Agreement").
The existing Agreement provides for one additional two-year extension. Lessee has requested a one-year extension of the Agreement at this time to continue ongoing operations at the leased premises. The proposed amendment provides for one additional one-year extension.
Lessee will pay annual minimum rent of $18,386 for the Premises, payable monthly in the amount of $1,532. Lessee shall pay the greater of the minimum rent or percentage rent in an amount equal to six percent of gross income.
FISCAL IMPACT
Description
Minimum Monthly Amount
1-Year Minimum Revenue Amount
Revenue Account
Chic's Custom Canvas
Minimum Rent Revenue
$1,532
$18,386
Harbor Leases
1751.4496
The amendment will result in minimum total revenue over the one-year term in t...
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